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EPA leaves biodiesel alone, raises cellulosic volume

Despite a major push from the Midwest to bolster Renewable Fuel Standard volumes for biomass-based diesel and cellulosic ethanol, in the end, the U.S. Environmental Protection Agency left its final numbers released on Thursday virtually untouched from the original proposal. Though the biodiesel industry pressed President Donald Trump's administration for higher biomass-based diesel volumes above the proposed 2.1 billion gallons for 2019, the EPA left that number unchanged. The agency originally proposed a cut, while the industry wanted the number set at 2.5 billion gallons.The EPA's final biomass-based diesel numbers came as a huge disappointment to an industry that maintains it has the capacity to produce 2.6 billion gallons. Corn ethanol blending requirements were set at 15 billion gallons for 2018, with overall biofuel blending obligations slightly higher overall, based on the final RFS volumes announced. Fifteen billion gallons of corn ethanol amounts to about 5.4 billion bushels of corn demand supported by the RFS.The overall total Renewable Volume Obligation, or RVO, for 2018 was set at 19.29 billion gallons. That represents a slight bump from the original proposal of 19.28 billion gallons. The agency had considered cutting the number to 19.24 billion gallons. The bump comes from a slight increase in the advanced biofuels volumes.

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